REPORT SUBMITTED BY GST LAW PANEL TO REVENUE SECRETARY REGARDING CHANGES IN GST ACT

GST LAW PANEL has given more than 100 recommendations but some of them are as follows:

• Reverse Charge Mechanism should be abolished
• E-Way bill should be deferred till 2019 and efforts may be made to bring some alternate method in place of E-Way Bill.
• Inter-state transactions should be allowed in Composition Scheme.
• 1% tax in Composition for traders, manufacturers and restaurants.
• Refund process should be automated
• In place of all other returns there should be a single consolidated return.
• Return process should be simplified and rationalised.
• The ITC should be released within same month. Matching and adjustment may be done later.
• FORM 3B is to be continued till March 2018
• Return should be filed quarterly but tax may be paid monthly.
• Doing away with HSN code in the invoice for easier return filing.
• Classification of items should be such that the raw material and finished product are in the same slab. This would make refunds process easier.
• Exempted or Nil rated goods should not be counted in aggregate turnover.
• All job work should be taxed@5%
• Service providers should also be allowed to take composition schemes
• Allowing revision in returns.
• Formation of a National Advance Ruling Authority
• Search/raid only if Authority is having credible evidence against a person and that too only with orders of Commissioner.
• Scrutiny of returns should be 0.5% to 1% only.
• Registration of persons even after July should be granted registration with retrospective effect from 1^st July 2017
• Purchasers can claim ITC provided have made payment of tax and received the goods. If the supplier does not pay tax the purchaser cannot be asked to reverse the credit.
• GST on interest charged for late payment should not be charged.
• The formula of deemed credit to weavers and fabric traders on the stock was held as of 30.6.2017.
• No requirement of reversal of VAT credit in the absence of Form C, F, H.
• ITC on business expenses like, food, insurance, the gift to employees, business assets
• Consolidated debit note instead of invoice-wise debit note.
• Threshold exemption of Rs.20lakhs to all types of commission agents
• The place of supply in many cases should be the registered place of the recipient in the case of B2B transactions.
• Withdrawal of Form ITC-4.
• Many relaxations to the casual taxable person.
• Common tax pool for payment of tax.
• No restrictions on refund of accumulated credit.
• Premises of assessee cannot be visited casually by the officers, prior written permission of the Commissioner required
• No penalty in case of the wrong classification
• No denial of credit on the purchases made from 1.7.2017 till the date of registration for textile traders and another segment as well.

 

​The panel received more than 700 representations on problems faced by industry over return filing, the E-way bill, Input tax credit, and Exports.

All the above Recommendations are some major out of many more Recommendations of A 6 -Member Advisory Group set up by Ministry of Finance on 2nd November 2017 and Group was asked to submit its report by 30th November on proposed changes in GST Act.

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